The level of venture capital (VC) funding in India in 2023 fell drastically by 63%, according to recently published research.
A report published by UK-based analytics firm GlobalData showed that the number of VC deals fell by 37.9%, from 1,748 to 1,085.
Meanwhile the value of the deals fell by 63% to US$7.8 billion in 2023.
According to GlobalData, the reasons for the decline include a number of macroeconomic challenges, ongoing conflicts and geopolitical tensions.
In addition, the report highlights concerns around startup valuations which have dented investor sentiments in India.
“Nevertheless, there are some bright spots as well, and the environment is not so gloomy for startups with a clear roadmap and strong fundamentals,” stated Aurojyoti Bose, lead analyst at GlobalData. “Funding secured by some of the startups despite challenging conditions is indicative of this.”
India also remains Asia’s second largest VC market, behind China, and accounts for 5.6% of the world’s total deals and 3.3% of the value.
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